BREAKING NEWSTGI Fridays crashes into administration with 87 restaurants at risk
The UK operator of TGI Fridays has gone into administration as the hospitality firm scrambles to sell its chain of 87 restaurants across the country.
The UK operator of TGI Fridays has gone into administration as the hospitality firm scrambles to sell its chain of 87 restaurants across the country.
Hostmore, which owns TGI in this country, said it had appointed administrators from Teneo after plans to buy the US restaurant chain collapsed earlier this month.
The company is in the process of trying to sell the UK restaurants to new owners, which it hopes to complete by the end of September.
This would keep the TGI Fridays brand alive on British high streets, although it is not clear at this stage whether some or all of the restaurants are likely to find a buyer.
it said earlier this month that it was not expecting to “recover any meaningful value” from the sale of sites, meaning it would earn less from the sale than it owes to creditors and banks.
TGI Fridays has 87 restaurants across the UK, having been founded in New York in 1965
TGI opened its first UK restaurant in Birmingham in 1986, then another in London one year later
Hostmore, which owns TGI in this country, said it had appointed administrators from Teneo after plans to buy the US restaurant chain collapsed earlier this month
The American-inspired restaurant chain continues to stay open as normal while the administration process starts.
The collapse of the London-listed hospitality business comes after plans to buy the US restaurant chain for £177 million fell through earlier this month.
It would have merged with US-based TGI Fridays Inc, to create a larger firm that would remain listed in London.
But the takeover plans were dropped after a management change which would have meant it could not collect royalties from the TGI Fridays brand.
Hostmore shares tanked by more than 90% after the news earlier in September, as shareholders took the brunt. Its shares are now worth less than 0.2 pence per share.
Its shares have now been suspended from the London Stock Exchange and the public company will be delisted and wound up.
TGI Fridays’ biggest market is in the US where there are 128 restaurants, including franchised sites, and it operates more than 270 in countries around the world.
The UK operator of TGI Fridays has gone into administration as the hospitality firm scrambles to sell its chain of 87 restaurants
TGIs owner said sales so far this year are 12 per cent lower than the same period last year
